7 articles tagged with “shipping”
Shopify adds no markup to labels. The overage is dimensional weight and carrier re-rates that back-bill to a later bill. Here is how to find and fix it.
You're losing money on free shipping only when your average order value sits below your break-even AOV. Compute that number, then decide.
Oversized packaging triggers dimensional weight, which bills a light parcel as if it were heavy. Right-size the box below 1,728 cubic inches and the DIM charge disappears.
Absorbing shipping wins until passing it drops conversion past your break-even delta. Here is how to compute that number for your store and test it.
Set a free shipping threshold with one formula, then lift it above your AOV. Here is the math, worked on a $28 serum, and why round numbers leak money.
Return shipping cost runs to roughly double your original label because the inbound label is the smallest part. Processing, lost payment fees, and resale markdown do most of the damage.
DDP vs DAP comes down to your refusal rate. DDP wins once door-bill refusals cross about 9 percent. Here is both paths costed on a $320 watch.